Between May and June of 1994, total employment in the U.S. economy fell from 122,872,000 to 122,430,000— a decline of 442,000. At the same time the number of unemployed dropped by 85,000 from 7,902,000 to 7,817,000 and the unemployment rate fell a bit from 6.042% to 6.001%.
A. Explain how can unemployment fall when the number employed is also falling?
B. From these numbers, calculate how large the labor force was in May and June of 1994.
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